Don’t wait till you’re 50 to tackle your debts!
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1. Overhaul your finances
Check all your bank, building society, credit card and loan statements so you can see how much you’re spending – and whether any obvious savings can be made. You can also do the same with household bills – and then make sure all the paperwork is filed away carefully.
Look for small ways to cut your spending so you can clear your debts more quickly. For example, you may be able to take a packed lunch to work, give up your morning latte, reduce your gym membership or stay in an extra night a week.
2. Start saving
If you don’t already have a savings plan, start one. It doesn’t matter how little you put in but try to make a regular contribution.
If you think you will be tempted to plunder the account, use one with restricted access.
3. Shop around
Your Money Matters suggests that up to £5,000 a year could be knocked off the average household credit bill simply by shopping around for the best deals on financial products, such as insurance, credit cards and loans.
So get on the phone or online and start finding where you can make savings. With energy prices on the rise this year, it’s also worth visiting a price comparison site like Moneysupermarket.com, which matches your profile to available offers.
